Friday, 12/03/2021, 09:06 GMT+7

     Logistics industry is considered a backbone of the economy, accompanying all areas of operation, from production, distribution, circulation to consumption.

 One of the most potential sectors of the economy:

      Logistics is an important service sector in the overall structure of the national economy, playing a role in supporting, connecting and promoting the socio-economic development of the country as well as each locality, contributing to improving the competitiveness of the economy.

          Developed in the 1990s, in a short time, Vietnam's logistics service has grown strongly, affirming the particularly important role in the Vietnam’s economy. Now, Vietnam logisics market  has the participation of about  3,000 domestic enterprises and about 30 enterprises providing transnational logistics services.

     Vietnamese logistics businesses are providing 2 to 17 different logisitics services, focusing on: delivery, inland transportation, operation of seaports and airports, warehousing, cargo management and international transport ...In particular, transportation is the most important service sector in  Vietnam's logistics system.



       According to the Vietnam Logistics Business Association, the growth rate of the logistics industry in Vietnam in recent years is relatively high, reaching about 14% -16%, with a scale of about 40-42 billion USD /year; The percentage of business outsourced logistics services is about 60-70%, contributing about 4-5% of GDP.

     Recently, supplementing Decision No. 200 / QD-TTg dated February 14th, 2017 on approving the action plan to improve competitiveness and develop Vietnam logistics services to 2025. Accordingly, the revised target set for 2025 such as: Striving to 2025, the contribution of logistics services to GDP reaches 5-6%, logistics service growth rate reaches 15% -20%, Logistics outsourcing rates services reached 50% -60%, logistics costs decreased to equivalent to 16% -20% of GDP, ranking according to LPI index in the world reached 50 or more.

      According to the above decision, the Government advocates to develop logistics services into a service industry that brings high value ... maximizing the advantage of strategic geographical location, strengthen  connectivity to make Vietnam become an important logistics point in the region.

     In order to reduce logistics costs and develop Vietnam logistics services, at the Vietnam Logistics Forum 2020 some proposed solutions such as: simplify administrative procedures, especially cross-border trade procedures; focus on investing in construction a modern and synchronized infrastructure to help save maximum cost time, meet the demand for transportation and circulation of goods; enhance new technology applications, more efficiently into logistics activities.

    There are specific programs, plans and projects to promote digital transformation in logistics enterprises ...; Building a network of Logistics enterprises, focusing on developing logistics systems associated with e-commerce; Development of new solutions to save raw materials, fuel, make maximum use of renewable fuel sources at ports, warehouses, enhancing vehicles using clean and environmentally friendly fuels ...

     In addition, Vietnam's participation in more and more Free Trade Agreements (FTAs) also created many opportunities to attract foreign investment with modern technology and increase advanced management methods in the field of logistics. To take advantage of business opportunities that come from the commitments in the FTAs, economic professionals say that logistics enterprises need to improve competitiveness as well as find suitable channels to increase links with enterprises providing various logistics services such as shipping lines, trade agents, insurance ...

                                                                                                                            Minh Duyen/ VietNam Agency (Aggregation)